Chip-enabled credit cards to become the new norm

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Big changes are in store for U.S. credit cards: strips are out and chips are in. We are finally joining other countries around the world. (KABC)

The days of swiping your credit cards will soon be a thing of the past. Instead of using the magnetic strip, you'll be using a chip.

"It's the biggest change in the way we've used credit cards in decades," said Matt Schulz, senior industry analyst at CreditCards.com.

It adds extra protection against fraud like when credit card numbers can be stolen with a single swipe. It's technology that's been used in Europe and Asia for years.

Beginning Thursday, new rules kick in nationwide requiring retailers to have chip-ready credit card machines. If they don't and there are fraudulent purchases on your card, the retailer, not the bank, is liable for the fraud.

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"People aren't ready yet. There's a lot of confusion out there," said Schulz.

That's mainly because many retailers and consumers haven't gotten the new technology.

That's expected to change. The American Bankers Association says that about 70 percent of cards will be chip-enabled by the end of 2015, but less than half of retail devices will be equipped to handle them.

This will change with time, and the added safety is a welcome tool in the fight against fraud.

Related Topics:
credit cardspersonal financefinancebanku.s. & world
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